Maffia v. United States

142 F. Supp. 891, 135 Ct. Cl. 604, 1956 U.S. Ct. Cl. LEXIS 176
CourtUnited States Court of Claims
DecidedJuly 12, 1956
DocketNo. 135-54
StatusPublished
Cited by6 cases

This text of 142 F. Supp. 891 (Maffia v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maffia v. United States, 142 F. Supp. 891, 135 Ct. Cl. 604, 1956 U.S. Ct. Cl. LEXIS 176 (cc 1956).

Opinion

Whitaker, Judge,

delivered the opinion of the court:

This case is before us on defendant’s motion for summary judgment.

[605]*605Plaintiff’s petition alleges that one James J. McSweeney offered to purchase from the Office of the Foreign Liquidation Commissioner of the Department of State three tugs lying at the Island of Malta for $4,000 each, and that his offer was accepted.

Before the sale was consummated, McSweeney executed a power of attorney to one A. G. Van Wye authorizing him to act as his attorney in fact “for the purpose of effectuating an assignment of said contract” to purchase the tugs. Ten days later, Van Wye “assigned said contract to plaintiff on condition that plaintiff make payment to the Office of the Foreign Liquidation Commissioner of the sum of $10,800, being the balance due upon said contract.”

Plaintiff gave notice of the assignment to the Office of Foreign Liquidation Commissioner, who advised plaintiff that upon receipt of the assignment, he would be recognized as the owner of the tugs.

The assignment was delivered to the Washington office of the Foreign Liquidation Commissioner, accompanied by plaintiff’s check for the balance due on the contract. A receipt for both the check and assignment was signed by the Acting Director, Budget and Accounting Division, Office of the Foreign Liquidation Commissioner.

Thereafter, through some inadvertence, the title documents to the tugs were delivered to the original purchaser in Borne, Italy.

■ Litigation then ensued between plaintiff and the original purchaser, as the result of which plaintiff finally secured the title documents. This cost plaintiff $92,600, he says. For this sum he sues.

Defendant pleads Title 41, U. S. C. 15, in defense. This section reads:

No contract or order, or any interest therein, shall be transferred by the party to whom such contract or order is given to any other party, and any such transfer shall cause the annulment of the contract or order transferred, so far as the United States are concerned. All rights of action, however, for any breach of such contract by the contracting parties, are reserved to the United States.

[606]*606This section seems plainly designed to protect the United States from the assertion by parties other than the contracting party of rights under Government contracts'. The contract designated the party with whom the Government had dealt, and the Government desired to be responsible to this party alone. It did not want any one else to come in and claim an interest in the emoluments to be derived therefrom. It did not want to be bothered with ascertaining whether or not they had a valid interest.

The Government of the United States is a vast organization with hundreds of thousands of agents scattered all over the world. Not infrequently, as in this case, an agent in Washington might be concerned with carrying out some part of a contract, and another agent in Paris, another part. The chance for a slip-up somewhere along the line would be greatly enhanced if the Government had to deal with more than one party. And so, Congress enacted the Act of July 17, 1862, 12 Stat. 594, section 14 of which is reproduced, as amended, in 41 U. S. C. 15, quoted above.

Plaintiff was not a party to the contract for the purchase of these tugs. He acquired an interest in them only by virtue of an assignment to him of McSweeney’s rights under the contract.

But this is precisely what 41 U. S. C. 15 was designed to forbid.

Plaintiff seeks to escape the effect of this statute by showing that he made the final payment for the tugs, not for himself, but for McSweeney, and, consequently, McSweeney secured title to them and transferred this title to him. But this obviously does not take the transaction out of the statute. When McSweeney made the final payment, he, McSweeney, acquired the right to receive the title documents, but the contract was not fully performed until the title papers had been delivered. Plaintiff’s cause of action, if he has any, arises because of the delivery of them to the original contracting party, and not to him, the assignee. The contract was not fully performed until the tugs had been delivered to the purchaser. The purchaser was prohibited by Title 41 U. S. C. 15 from assigning to any one his contractual right [607]*607to receive the tugs or the documents evidencing title to them.

The Acting Director of the Budget and Accounting Division of the Office of Foreign Liquidation Commissioner no doubt intended to cause the delivery to plaintiff of the title documents, but his advice to his associates in Paris of the payment to him of the balance on the purchase price by a person to whom the purchaser had assigned his interest in the tugs was overlooked, apparently, by the agent having custody of the title documents, and they were delivered to the purchaser, in accordance with the requirements of the contract, instead of to the assignee.

As a result, litigation ensued, and the assignee was put to the expense, he says, of $92,600 to recover them. He seeks to hold the Government liable for this $92,600, although it only received $12,000 for the tugs.

It was just this sort of situation that 41 U. S. C. 15 was designed to prevent. The wisdom of Congress in passing such an Act is obvious.

However, we think defendant’s motion for summary judgment should be overruled. Plaintiff is out of pocket the sum of $10,800, and we were advised by counsel in open court that the defendant has not returned this money to plaintiff. Since the Government pleads the invalidity of the assignment which induced plaintiff to pay this money, it would seem that it should in good conscience return the money to plaintiff. This would put plaintiff and defendant in statu quo ante the assignment and the deposit of the money.

This would, of course, deprive the Government of this much of the purchase price for which it agreed to sell the tugs, but it would seem that it should look to the original purchaser for this sum, since it repudiates the assignment, in consideration of which the assignee paid it the money. Before deciding this question, however, we think we should have the full facts before us. The case is, therefore, remanded to a Commissioner for the taking of testimony.

It is so ordered.

Laramobe, Judge, and Jones, Chief Judge, concur.

[608]*608MaddeN, Judge,

delivered the following opinion:

.On February 6,1948, one McSweeney, an American living temporarily in Kome, submitted to the Paris office of the Foreign Liquidation Commissioner of the Department of State an offer to purchase from the Government three surplus tugs, then located at Malta, for $12,000. The tugs were being sold pursuant to the provisions of the Surplus Property Act of 1944, as amended, 50 U. S. C. App. §§ 1611 et seq. Mc-Sweeney tendered with his offer $1,200, 10 percent of the total price offered.

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Bluebook (online)
142 F. Supp. 891, 135 Ct. Cl. 604, 1956 U.S. Ct. Cl. LEXIS 176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maffia-v-united-states-cc-1956.